LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE

The Legislative, Finance, and Administration Committee meeting was held on February 28, 2011 at 6:00 p.m. with Mr. Salters presiding in the absence of Chairman Leary. Members present were Mr. McGiffin, Dr. Jones, and Mr. Shevock. Members of Council present were Council President Hogan, Mr. Bonar, Mr. Ruane, and Mrs. Russell. Mayor Carey was also present.

AGENDA ADDITIONS/DELETIONS

Mr. McGiffin moved for approval of the agenda, seconded by Mr. Shevock and unanimously carried.

Review and Recommendation - Filling of Critical Positions

During their meeting of February 23, 2009, members recommended approval of a Hiring Freeze for Fiscal Year 2008-2009, but to allow the hiring of critical positions through the review and approval of the Legislative, Finance, and Administration Committee and City Council. It was suggested that there be a “standing” agenda item to consider the filling of critical positions and, if there were no positions to consider, the item could be removed.

Mr. Salters noted that there were no critical positions to be considered; therefore, no further action was required.

Latest Estimate (LE) for Fiscal Year 2011 Budget

Mrs. Teresa Tieman, Senior City Administrator, advised members that the Latest Estimate was prepared prior to the February 17, 2011 meeting of the Joint Legislative, Finance, and Administration and Safety Advisory and Transportation Committee. Therefore, she felt that it would not be appropriate to include the committee recommendations regarding police staffing and programs until acted on by Council during the Regular Council Meeting on February 28, 2011.

Mrs. Tieman informed members that the Joint Legislative, Finance, and Administration and Safety Advisory and Transportation Committee recommended that two additional officers be sent to the spring police academy class, and that a one-time $40,000 Police Chief’s Discretionary Fund be established, noting that these expenses can be covered by savings in this year’s budget, as reflected in the Latest Estimate. She stated that no further adjustment would be necessary in the proposed police salary budget because the police academy class has been rescheduled for mid-April. Mrs. Tieman explained that, since the cost of four officers in a mid-April class is about the same as the budget for two officers in a February class, which was originally approved by City Council, no further adjustments will be needed to the Latest Estimate.

Mrs. Tieman stated that, if the City Council approves the recommendation of the Joint Legislative, Finance, and Administration and Safety Advisory and Transportation Committee during the Regular Council Meeting on February 28, 2011, the Latest Estimate will be amended before the First Reading of the budget ordinances.

Mrs. Tieman reviewed a Presentation - Fiscal Year 2010-2011 Latest Estimate, February 2011 (Attachment #1) and noted that this presentation is to be viewed in conjunction with the Latest Estimate, Fiscal Year 2010-2011 Budget. Mrs. Tieman reminded members that the latest estimate factors in known changes since the budget was approved.

Referring to Page 5 of the Presentation, Mrs. Tieman informed members that the Transfer Tax revenue is projected at $750,000, which increases the total to approximately $1.4M. She stated that the $750,000 is due to recent large receipts, which were identified in the December Quarterly Revenue Report, and several others received since that time.

Mrs. Tieman stated that Trash Fees revenues have decreased $194,511, and explained that some of this decrease was expected because several out-of-City customers canceled trash service following the last fee increase; however, a reduction in expenses is also reflected.

Responding to Mr. Salters, Mrs. Tieman explained that the Parks and Recreation Silver Lake Watershed Coordinator is employed by the State of Delaware; however, the $51,000 grant pays for the City’s portion of the expense.

In response to Mr. McGiffin, Mr. Anthony DePrima, City Manager, stated that the Tax Assessor legal expenses for tax appeals in the amount $88,000 resulted from having a tax attorney present during Tax Appeals and write new ordinances related to taxes, as well as costs associated with a recent law suit that has been settled.

Responding to Mr. Shevock, Mrs. Tieman explained that the reduced expense for landfill fees referenced on Page 8 of the Presentation is due to less tonnage which is probably due, in part, to recycling.

Mrs. Tieman clarified, in response to Mr. Shevock, that the fund balances are projected over the minimum as the result of departmental savings and enhanced revenue, particularly noting the Transfer Tax, which was approximately $750,000 more than anticipated.

Referring to Page 1 of the Latest Estimate, Fiscal Year 2010-2011 Budget, Mr. Ruane questioned if it would be fiscally allowable to utilize the excess Electric Fund balance funds to provide a Power Cost Adjustment (PCA) to customers. Responding to Mr. Ruane, Mr. DePrima indicated that staff feels comfortable, based on the Latest Estimate, that $1.4M would be available for a Power Cost Adjustment (PCA) credit, which could be layered in over a 15-month period, beginning April 1, 2011, so that it would remain in sync with the fiscal year.

Mrs. Tieman reviewed Estimated Savings from Proposed PCA Calculation, as of February 28, 2010 (Attachment #2).

In response to Mr. Hogan, Mrs. Tieman stated that the Proposed PCA Calculation suggests a credit in the amount of $.0043 from April 1 through June 30 and $.0015 beginning July 1 through June 30, 2012.

Mr. DePrima reminded members that, ultimately, Council has the authority to provide the PCA.

In response to Mr. Bonar, Mrs. Tieman stated that a First Reading would be held on March 14, 2011 and a Final Reading on March 28, 2011. She stated that the PCA would be effective with all bills billed on or after April 1, 2011.

Replying to Mr. Bonar, Mrs. Tieman clarified that the estimated savings for the average residential customers would equal approximately $12.90 for three months or $4.30 per month for three months.

Mr. McGiffin moved to accept the Latest Estimate (LE) for Fiscal Year 2011 Budget Report, seconded by Dr. Jones and unanimously carried.

Mr. McGiffin moved to recommend instituting a Power Cost Adjustment (PCA) to use $1.4M, applied over 15 months, effective with all bills billed on or after April 1, 2011, seconded by Mr. Shevock and unanimously carried.

Proposed Ordinance #2011-07 Amending Chapter 46 Fire Prevention and Protection, Article III - Fire Codes, Section 46-126 - Fire Prevention Permit

Mr. Scott Koenig, Public Services Manager/Director of Public Works, reviewed Proposed Ordinance #2011-07 Amending Chapter 46 Fire Prevention and Protection, Article III - Fire Codes, Section 46-126 - Fire Prevention Permit and Amendments to Appendix F - Fees and Fines.

Mr. Koenig stated that the Delaware State Fire Prevention Regulations require periodic inspections, testing, and maintenance of fire alarm signaling, fire suppression, and any other fire protection systems, devices, and equipment installed within the State of Delaware, in accordance with the National Fire Protection Association’s National Fire Codes and Standards.

Mr. Koenig advised members that, currently, Delaware State Fire Prevention Regulation 703, Chapter 9.1.1 requires that the Annual Certificate of Inspection and the appropriate fees be forwarded to the State Fire Marshal, with the exception of systems that are located in the jurisdiction of a Jurisdictional Assistant State Fire Marshal. He explained that, in those exceptions, the fees are paid to the appropriate Jurisdictional Assistant State Fire Marshal’s office. Mr. Koenig stated that Dover, Newark, New Castle, and Wilmington are considered to have Jurisdictional Assistant State Fire Marshals; however, currently, only the City of Wilmington and the City of Newark require the fees to be paid to the municipality. The City of Dover and the City of New Castle do not require the fees.

Mr. Koenig explained that, in an effort to develop new revenue streams, staff proposes the implementation of the fees identified in the Delaware State Fire Prevention Regulations. He stated that Proposed Ordinance #2011-07 would allow the City to collect the fees and begin the additional monitoring associated with receiving the certificates. He informed members that, in the past, the City has received fees collected by the inspection agencies but, without the proper authority to collect these fees, has had to return them.

Mr. Koenig expressed his feeling that this would not be new to the community, noting that the inspection agencies are aware that these fees are required by State regulation.

Mr. Koenig stated that staff has estimated that the collection of these fees will generate approximately $50,000 per year in additional revenue. He also stated that, once the City begins receiving the certificates, staff will update the GIS systems and the monitoring systems to ensure that accurate records are kept.

Mr. Koenig stated that the proposed fees support the following Critical Success Factors identified in the Strategic Initiatives Section of the Fiscal Year 2010-2011 Annual Operating Budget: Citywide Safety and Cost and Revenue Efficiency.

Responding to Mr. Salters, Mr. David Truax, Fire Marshal, stated that the City does not do the annual inspection of any fixed fire protection, including sprinkler, fire alarm, hood suppression, or fire extinguisher. He explained that these inspections are performed by contractors licensed through the State Fire Marshal’s Office. The City Fire Marshal’s Office is notified of violations within the City of Dover and follows-up to ensure compliance or issues summonses as needed.

In response to Dr. Jones regarding the anticipation of increases in administrative costs associated with managing the new fees, Mr. Koenig stated that during the first year or two, there will be additional responsibilities with the collection of fees and ensuring that the City has all of the certificates in place. However, once the database is established, the intent is to utilize the GIS system; therefore, only maintenance would be required from that point forward. Mr. Koenig explained that, at this time, additional staff is not being requested.

Responding to Mr. Shevock, Mr. Koenig explained that the City will not be involved in any invoicing. He stated that the inspection agency will provide the City with a copy of the certificate and the insurances of inspection, as well as a check. The check will be processed and the information will either be entered into the database and the GIS system or only the database which will be imported into the GIS system. He informed members that all of the certificates will be kept on file and will be available to the Fire Marshal’s Office, and possibly the Fire Department, through the GIS system.

Staff recommended adoption of Proposed Ordinance #2011-07 Amending Chapter 46 Fire Prevention and Protection, Article III - Fire Codes, Section 46-126 - Fire Prevention Permits and Amendments to Appendix F - Fees and Fines.

Mr. McGiffin moved to recommend adoption of Proposed Ordinance #2011-07 Amending Chapter 46 Fire Prevention and Protection, Article III - Fire Codes, Section 46-126 - Fire Prevention Permits and Amendments to Appendix F - Fees and Fines (Attachment #3), seconded by Dr. Jones and unanimously carried.

Review of Hospitality and Civic Function Policy

Mayor Carleton E. Carey advised members that there are important functions offered by the Central Delaware Chamber of Commerce and Kent County Tourism that are currently not covered under the City’s Hospitality and Civic Function Policy. He stated his feeling that these functions should be covered for Council Members to attend, and offered a list of examples, as follows:

1.The Kent County Tourism Annual Awards Dinner

2.The Central Delaware Chamber of Commerce Annual Awards Dinner

3.The Mayor’s Annual Prayer Breakfast

4.The Governor’s Annual Prayer Breakfast

5.Kent County Economic Summit

Mr. McGiffin requested that Mayor Carey provide members with the costs for each of the events listed.

Additionally, Mr. Salters requested that Mayor Carey provide the annual cost for members to attend these events.

Mr. McGiffin moved to defer the matter until the next committee meeting, seconded by Dr. Jones and unanimously carried.

By unanimous consent, the meeting adjourned at 6:56 p.m.

Respectfully submitted,

Reuben Salters

Acting Chairman

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Attachments

Attachment #1 -   Presentation - Fiscal Year 2010-2011 Latest Estimate, February 2011

Attachment #2 -   Estimated Savings from Proposed PCA Calculation, as of February 28, 2010

Attachment #3 -   Ordinance #2011-07 Amending Chapter 46 Fire Prevention and Protection, Article III - Fire Codes, Section 46-126 - Fire Prevention Permit and Amendments to Appendix F (Attached to Original Minutes and File Copy)